MetroPCS largest investor changes course, now backs T-Mobile merger

To say that the MetroPCS battle between its shareholders has been a soap opera is an understatement. T-Mobile merging with the small prepaid carrier has cleared every legal hurdle possible, including the blessings of the FCC and DOJ.

However both companies have been at the mercy of MetroPCS’s shareholders — until today. A huge shift has transpired that may have swayed the momentum back to both companies, as the largest shareholder has finally given the nod to the merger.

Paulson & Co. MetroPCS’ largest investor has been a thorn in the side of the company’s plan to merge with T-Mobile. Now the investment firm has changed its tune, instead opting to back the deal after implementing some changes to the terms.

In a statement the firm said:

“While Paulson needs to review the revised proxy statement before making a final decision, Paulson intends to vote for the merger as restructured.”

To better smooth things over, Deutsche Telekom, parent company of T-Mobile, cut the amount of debt the combined company would acquire by $3.8 billion. Of course, this move was great news for Paulson because picking up some more of the debt gives them more profit on their investment.

Happy with the turn of events, T-Mobile parent company said “This improved offer underlines Deutsche Telekom’s commitment to establishing a new, stronger competitor in the U.S. mobile communications market.”

In the end, we expect all the other shareholders opposing the deal to come onboard. These guys would have to be completely out of their minds to let this T-Mobile merger go down the toilet, because MetroPCS on its own isn’t in good shape.